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Government says new Dispute Resolution Commitment means it is serious about ADR

The government will “lead by example” in using alternative dispute resolution methods rather than resorting to the courts, Justice Minister Jonathan Djanogly has claimed.

It has signed a first-ever ‘Dispute Resolution Commitment’, which requires all Whitehall departments and agencies to use mediation, arbitration and conciliation “wherever possible” before taking disputes to court.

The DRC includes adopting appropriate dispute resolution clauses in all relevant government contracts. These model clauses have been agreed with the Cabinet Office’s Efficiency and Reform Group.

Under the DRC, departments and their agencies “commit to:

  • being proactive in the management of potential disputes and in working to prevent disputes arising or escalating, in order to avoid the need to resort to the use of formal disputes mechanisms wherever possible;
  • including dispute resolution mechanisms within their complaints and disputes handling procedures;
  • engaging in a process of appropriate dispute resolution in respect of any dispute which has not been resolved through the organisation’s normal complaints procedure, as an alternative to litigation;
  • adopting appropriate dispute resolution clauses in their contracts with other parties;
  • using prompt, cost effective, and efficient processes for completing negotiations and resolving disputes;
  • choosing processes appropriate in style and proportionate in costs to the issues that need to be resolved;
  • making informed choices by considering the benefits to the organisation, and to whomever they are in dispute, of all available processes in achieving resolution;
  • recognising that the use of appropriate dispute resolution processes can often avoid the high cost in time and resources of going to court;
  • educating their employees and officials in appropriate dispute resolution techniques in order to enable the best possible chance of success when using them.”

“By adopting this commitment, government departments and their agencies are communicating to their customers, contractual partners, service providers, employees and the general public that they are serious about effective dispute resolution,” it says.

Djanogly suggested that making use of the various ADR options – as part of the Alternative Dispute Resolution Pledge made by the government in 2001 – had already saved an estimated £360m over the last decade.

The Ministry of Justice said that the move was part of government efforts to encourage people and businesses to take responsibility for their own disputes, rather than turning to lawyers and judges to resolve issues.

It comes days after the Justice Secretary published the Legal Aid, Sentencing and Punishment of Offenders Bill, which will implement the Jackson Review’s recommendations in full.

Djanogly said: “I believe that government should be leading by example by resolving issues away from court using alternatives which are usually quicker, cheaper and provide better outcomes. We want people to see court as a last resort rather than a first option, and cut down on the amount of unnecessary, expensive, painful and confrontational litigation in our society.

“In many cases methods like mediation are simply a common sense solution which benefits everyone involved. Although they will not be suitable in every case, they are already saving taxpayers millions every year and can save much more.”

Attorney-General Dominic Grieve said: “There will still be cases which need to be litigated, notably where a legal precedent is needed to clarify the law or where it would not be in the public interest to settle a claim. However, the government remains fully committed to resolving legal disputes by dispute resolution techniques other than litigation wherever it is possible and acceptable to both sides.”

The Treasury Solicitor, Paul Jenkins QC, said he strongly supported the commitment and its promotion of a flexible and constructive approach to the resolution of disputes.

The Treasury Solicitor’s Department provides legal services to more than 180 central government departments and other publicly funded bodies in England and Wales. It handles most litigation brought against government.

The Dispute Resolution Commitment and accompanying guidance can be found here.

Philip Hoult